Best GICs of 2018

Back in February, Ratehub.ca launched its inaugural Personal Finance Awards, which covered the best banking accounts of 2017 and highlighted a few strong contenders for the Awards of 2018. As we put that list together back in February, we thought it’d be great to give you a half-year check-in with some of the best Canadian investment accounts.

Now, however, you’re ready to see what your money can really do for you. We’ll take a look at some of the best tax-free savings accounts and GICs currently offered in Canada.

GICs offer great options to invest short- and long-term in accounts that offer guaranteed returns while also collecting your principle. GIC rates are also on the rise, meaning your money will work even harder these days than in previous years.

Want a better GIC rate?

Oaken Financial, which is the direct-to-consumer financial arm of Home Trust, is currently offering a number of TFSAs with market-leading interest rates.

Its one-year TFSA offers interest of 2.8% (which will earn depositors with a $5,000 balance $140). Oaken also offers two-year terms (at 3.1% for a total return of $301); three-year terms at 3.15% ($473); four years at 3.2% ($640); and five years at 3.4% ($850).

All of Oaken Financial’s TFSAs are CDIC insured, meaning your accounts are covered up to $100,000.

Meridian Financial Good to Grow TFSA

Meridian is offering one of the best promotional rates at the moment, with its TFSA providing 3% interest for the first four months of opening an account. Once that four months ends, your account will earn 1.4%. Meridian is an Ontario-based credit union; however, its accounts are available Canada-wide.

The account also includes unlimited transactions and access to surcharge-free Meridian ABMs and 3,500 EXCHANGE Network ABMs across Canada.

Best non-registered GICs

Omnia Direct

For one year, non-registered GICs, Omnia Direct currently offers the highest interest rate. Its one year GIC will earn depositors 3% interest – good for $150 over that year, assuming an investment of $5,000.

Oaken Financial one- and five-year GICs

Oaken Financial currently offers one- and five-year non-registered GIC rates at 2.8% and 3.4% respectively. Those are the best rates for CDIC-insured accounts in Canada at the moment.

Meridian Credit Union

When it comes to provincially insured accounts, Meridian Credit Union currently offers the best option, with a five-year GIC at 3.5%.

With TFSAs and RRSPs, Canadians have great options for saving money. And in some respects, TFSAs and RRSPs are quite similar. Yet there are important differences to be aware of when it comes to these accounts.

It’s that time of year again: The leaves begin to change colour, the temperature gets a little cooler, and students head back to school. And if you’re a new post-secondary student, it’s the time to get … Read More